Automatic $LAB Buyback

LineaBank is a lending protocol that earns its main revenue from the interest on loans paid by borrowers. Unlike other projects, LineaBank is designed to adjust the reserve factor (protocol allocation of revenue streams from borrowers and distribute them to LineaBank users.

Protocol revenue sources

  • Borrower's interest fees
  • Liquidation penalty fees
  • Fees for claiming platform revenue share
Currently, LineaBank has a reserve factor of 80%, which means that if the protocol earns $1000 in interest, $800 of it goes to the protocol and $200 is rewarded to liquidity providers. However, 80% of that $800, i.e. $640, is paid out weekly to $LAB stakers. And when $LAB stakers claim their platform revenue share (e.g., ETH, USDC, etc.), they can only claim it in $LAB with a 5% fee.

Sharing wealth

This causes strong buying pressure on the $LAB token. Because when a user claims a share of the platform's revenue, $LAB tokens are automatically purchased with assets like ETH or USDC and distributed to the user.
And looking at other major lending platforms, it's estimated that when LineaBank reaches a market size of 10M, that number will be over $10,000 per week. In addition to that, the majority of the revenue accrued to LineaBank will be used to buy back and burn $LAB tokens.